Online hotel ratings and its influence on hotel room rates: the case of Lisbon, Portugal
Lisbon is one of the European Union cities that has one of the highest growth in the number of hotels. With the digital revolution, travelers can easily not only compare prices but also get information about the experience of other guests which can influence prices. The aim of this paper is to a...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Algarve, ESGHT/CINTURS
2018-01-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/1024/pdf_90 |
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| Summary: | Lisbon is one of the European Union cities that has one of the highest
growth in the number of hotels. With the digital revolution, travelers
can easily not only compare prices but also get information about the
experience of other guests which can influence prices. The aim of this
paper is to analyze how prices for a hotel stay can be influenced by
some quality signaling factors, as star rating and online consumer’s
ratings (location, cleanliness, comfort, facilities, staff and value for
money, available on Booking.com), the volume of consumer’s
comments and the availability of rooms in Lisbon. For 151 hotels in
Lisbon, from 3 to 5 stars, through a multiple regression model, the
results suggest that hotel category, location and facilities ratings have a
positive influence on hotel room rates, but higher trade-off between
what clients pay and the guest hotel stay experience has a negative
impact on the consumer’s willingness to pay, as well as the number of
comments. Among different hotel categories, the influent factors are
different. Our main findings provide signs to hoteliers to take corrective
actions towards the attributes most valuable for consumers and that
can provide a higher room rate premium. |
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| ISSN: | 2182-8466 |